CANADA FX DEBT-C$ weakens against firmer greenback as oil falls

Reuters Staff

2 Min Read

* Canadian dollar at C$1.3265, or 75.39 U.S. cents
* Bond prices lower across the maturity curve
TORONTO, Oct 12 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Wednesday as oil fell and the
greenback added to recent gains ahead of minutes from the
Federal Reserve's latest monetary policy meeting.
Rising expectations that the U.S. Federal Reserve will raise
interest rates as early as December helped push the U.S. dollar
to a 7-month high against a basket of major
currencies.
Oil prices fell despite record Indian crude imports and
talks between OPEC producers and other oil exporters on curbing
output to end a glut in the global market. U.S. crude
prices were down 1.06 percent at $50.25 a barrel.
Oil is one of Canada's major exports.
At 9:26 a.m. EDT (1326 GMT), the Canadian dollar
was trading at C$1.3265 to the greenback, or 75.39 U.S. cents,
weaker than Tuesday's close of C$1.3241, or 75.52 U.S. cents.
The currency's strongest level of the session was C$1.3209,
while its weakest was C$1.3283.
On Friday, the loonie touched its weakest in more than six
months at C$1.3315.
Losses for the loonie came as shares fell worldwide towards
three-week lows after a dour start to the U.S. earnings season.
Germany's Constitutional Court on Wednesday began hearing a
legal challenge to a planned EU-Canada free trade deal that
could paralyze the accord.
Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries. The two-year
fell 1.5 Canadian cents to yield 0.612 percent and the benchmark
10-year declined 20 Canadian cents to yield 1.22
percent.
On Tuesday, the 10-year yield touched its highest in nearly
four weeks at 1.257 percent.
Canadian Finance Minister Bill Morneau will share his
perspectives on long-term growth for the country's middle class
at the Public Policy Forum's Growth Summit at 12:45 p.m EDT
(1645 GMT).
(Reporting by Fergal Smith; Editing by Nick Zieminski)